Unveiling the Scale of Amazon’s Dominance in the Cloud Market

The magnitude of Amazon’s cloud service, Amazon Web Services (AWS), has been a topic of interest globally. In a recent RightScale report, a comparative study painted a vivid picture showing how AWS outperformed its competitors. According to the survey, 57 percent of respondents disclosed their usage of AWS, a marked increment from the 54 percent recorded in 2014. In contrast, a mere 12 percent of respondents reported using Microsoft Azure, though this doubled the 6 percent usage disclosed in 2014.

Now that we have crossed into 2020, it’s essential to take a look at AWS’s performance throughout the year. According to an enlightening report by the Synergy Research Group, Amazon’s supremacy in the cloud computing market space is undisputed. But how expansive is this dominance? Let’s delve into the intriguing details.

AWS currently controls an impressive 45 percent of the global public Infrastructure as a Service (IaaS) market. This significant market share is despite the growth indicators in Microsoft and Google’s cloud services which they declared in their recent quarterly earnings. Putting the scale of AWS’s dominance into context, it overshadows the combined market share of its next three competitors.

A more comprehensive competitive landscape exists in the public Platform as a Service (PaaS) market. However, Amazon still clinches the top spot, ahead of contenders like Salesforce, Microsoft, and IBM. As for the managed private cloud sector, IBM leads, followed closely by Amazon, Rackspace, and NTT. Collectively, the market power of the four largest cloud providers – Amazon, Microsoft, IBM, and Google – surpasses over half the global market with each still augmenting their market share.

However, the aggressive penetration of other companies in providing cloud services seems to be biting into AWS’s lead. Microsoft and Google are gaining ground, growing at considerably higher rates than AWS. It’s worth noting the headstart that Amazon possessed by launching AWS in 2006, four years ahead of Microsoft’s introduction of its own public cloud platform in 2010.

AWS revenue raked in $2.88 billion in the second quarter and registered a 58 percent rise year on year. In the third quarter, revenue hit $3.23 billion, exceeding the $3.17 billion forecast. This reflects a 54.9 percent increase compared to the previous year. So far, Amazon’s AWS has churned out about $9 billion in revenue and looks on course to achieve approximately $12 billion at the close of the year.

The report distinguishes, though, that IBM is the topmost provider of private cloud services. This suggests that when it comes to individuals and organizations setting up their own infrastructure, IBM outranks others in selling a considerable amount of the necessary machines. [See differences in cloud service provision services and which one might suit your needs](http://techbooky.com/which-is-better-for-you-public-private-or-hybrid-cloud-find-out-here/).